2007-04-27 08:00:00 CEST
2007-04-27 08:00:00 CEST
REGULATED INFORMATION
Done Solutions Oyj - Quarterly report
MARKED INCREASE IN DONE SOLUTIONS CORPORATION'S NET SALES AND OPERATING PROFIT
Done Solutions Corporation
Stock Exchange Release April 27, 2007, at 9:00 a.m.
MARKED INCREASE IN DONE SOLUTIONS CORPORATION'S NET SALES AND OPERATING PROFIT
Done Solutions Corporation's Interim Report Q1/2007 (IFRS)
- Consolidated net sales: EUR 5.2 million (EUR 3.8 million in Q1/2006), up by
37.8 percent from the previous year.
- Consolidated operating profit: EUR 0.86 million (EUR 0.41 million), or 16.6
percent of net sales (10.9 percent), up by 109.3 percent from the previous year.
- Net profit from continuing operations and net profit for the period: EUR 0.63
million (EUR 0.42 million), or 12.2 percent of net sales (11.0 percent).
- Earnings per share from continuing operations: EUR 0.010 (EUR 0.007). Equity
ratio at 66.3 percent (49.4 percent).
- Period-end cash and cash equivalents: EUR 2.5 million (EUR 4.2 million).
- The Group predicts that consolidated net sales and operating profit for 2007
will exceed the previous year's levels.
BUSINESS ENVIRONMENT
Demand for documentation and visualization services provided by the Services
segment remained firm throughout the reporting period, while demand for
translation services remained strong.
The Systems segment's automation systems recorded a good order intake, reflected
in high net sales reported for the period. Demand for software deliveries also
remained at a sound level. The segment has extended its operations to cover not
only Europe and North America but also new market areas, the segment seeing
orders from Asia and Russia.
The Health Care segment showed firm demand for tonometers, especially the
TonoVet used in veterinary medicine. An application for an FDA (Food and Drug
Administration) license to sell iCare tonometers in the USA, submitted by Tiolat
Oy in December 2006, is pending. The segment's net sales growth rate during the
rest of 2007 depends on how quickly the sales license application process will
proceed and new markets open.
NET SALES, PROFITABILITY AND PROFIT
Consolidated net sales for the period came to EUR 5.2 million (EUR 3.8 million),
up by 37.8 percent year on year.
Consolidated operating profit amounted to EUR 0.86 million, accounting for 16.6
percent of consolidated net sales (EUR 0.41 million, or 10.9 percent of
consolidated net sales), up by 109.3 percent from the previous year.
Pre-tax profit totaled EUR 0.86 million, accounting for 16.6 percent of net
sales (EUR 0.50 million, or 13.2 percent of net sales), up by 72.5 percent year
on year.
Net profit from continuing operations and net profit for the period totaled EUR
0.63, accounting for 12.2 percent of net sales (EUR 0.41 million, or 11.0
percent of net sales), up by 53.7 percent from the previous year. The amount of
expenses for deferred tax assets before profit recognized for Q1/2007 tax came
to EUR 0.26 and for Q1/2006 EUR 0.00 million.
Earnings per share rose to EUR 0.010 (EUR 0.007) and equity per share improved
to EUR 0.175 (EUR 0.075). Diluted earnings per share equaled basic earnings per
share.
Services (Done Information), Systems (Done Logistics) and Health Care (Tiolat)
form the Group's primary, IFRS-compliant segment reporting format. Net sales and
profit by segment were as follows:
Net sales Net sales Segment profit
Q1/2007 Q1/2006 Q1/2007 Q1/2006
MEUR share MEUR share MEUR % MEUR %
Services 1.5 29% 1.3 35% 0.28 19 0.20 15
Systems 2.6 51% 1.7 46% 0.33 13 0.25 14
Health Care 1.1 20% 0.7 19% 0.41 39 0.15 21
Total 5.2 100% 3.8 100% 1.02 20 0.59 16
Parent company costs -0.16 -3 -0.18 -5
Operating profit 0.86 17 0.41 11
BALANCE SHEET AND FINANCIAL POSITION
On March 31, 2007, consolidated balance-sheet total amounted to EUR 17.7 million
(EUR 11.3 million on March 31, 2006). Shareholders' equity came to EUR 11.6
million (EUR 4.5 million). Interest-bearing liabilities totaled EUR 1.1 million
(EUR 2.1 million) and gearing stood at -12.3 percent (-37.5 percent). At the
period-end, equity ratio was 66.3 percent (49.4 percent) and cash and cash
equivalents stood at EUR 2.5 million (EUR 4.2 million). In February, Done paid
EUR 1.0 million for Kiinteistöyhtiö Kauhajoen Hakasivuntie 1 shares, previously
shown under liabilities in the balance sheet.
MAJOR EVENTS DURING THE PERIOD
Pekka Pystynen, President and CEO of Done Solutions Corporation, entered sick
leave on January 23, 2007 until further notice. Juha Kujala, General Counsel, is
deputizing for him.
MAJOR EVENTS AFTER THE BALANCE SHEET DATE
On April 3, 2007, Done Solutions Corporation published a stock exchange release
dealing with decisions made by the Annual General Meeting (AGM) on the same
date. The AGM's decision on alterations of the Articles of Association and other
decisions requiring registration in the Trade Register were registered on April
16, 2007.
OTHER EVENTS AFTER THE BALANCE SHEET DATE
On April 3, 2007, the Company paid EUR 0.8 million in subordinated loans and EUR
0.13 million in interest to Conventum Venture Finance Ltd (EUR 0.55 million and
EUR 0.09 million) and Jyri Merivirta (EUR 0.25 million and EUR 0.04 million),
the latter belonging to the Company's related parties. Following these paybacks,
consolidated interest-bearing liabilities came to EUR 0.2 million.
PRODUCT DEVELOPMENT
Product development costs for the period came to EUR 0.04 million (EUR 0.05
million) and were expensed as incurred.
HUMAN RESOURCES
During the period, the number of employees averaged 133 (130), two of whom
worked abroad (2). Personnel by segment was as follows:
Q1/2007 Q1/2006
Services 66 65
Systems 58 56
Health Care 6 6
Parent company 3 3
Total 133 130
MANAGEMENT AND AUDITORS
From April 3, 2007, Done Solutions Corporation's Board of Directors is made up
of the following members: Jyri Merivirta (Chairman), Matti Nevalainen and Pekka
Tammela.
Deloitte & Touche Oy, Authorized Public Accountants, acts as the company's
auditor, with Eero Lumme, Authorized Public Accountant, acting as the chief
auditor.
INSIDER ISSUES AND CORPORATE GOVERNANCE
Done Solutions Corporation complies with the Helsinki Stock Exchange's
Guidelines for Insiders effective since January 1, 2006 and, to the applicable
extent, the Recommendation on the Corporate Governance for Listed Companies
effective since July 1, 2004. The Company's Corporate Governance Statement is
available in the Investors section on the Company's website.
SHARE CAPITAL AND SHARES
On March 31, 2007, Done Solutions Corporation's share capital amounted to EUR
5,314,918.72 and the number of shares totaled 66,436,484.
On March 31, 2007, the Board of Directors had no valid, unexercised share issue
authorizations, nor had the Company treasury shares. By April 27, 2007, the
Board had not exercised valid authorizations to issue 33,000,000 shares and
dispose of 6,643,648 treasury shares, resolved by the AGM of April 3, 2007.
Based on the AGM's authorization issued on April 3, 2007, the Board of Directors
may decide to buy back 6,643,648 own shares. The company had no treasury shares
on April 27, 2007, nor has it valid stock option schemes in place.
The reported share turnover of Done Solutions Corporation between January 1 and
March 31, 2007 was EUR 5.5 million, representing 18.0 million shares and 27.1
percent of the total number of company shares. The share registered a high of
EUR 0.33 and a low of EUR 0.28. The share price averaged EUR 0.31 and closed at
EUR 0.30 on March 31, 2007. The company's market capitalization on March 31,
2007 totaled EUR 19.9 million.
SHAREHOLDERS
The reporting period saw one flagging notification related to shareholdings.
Conventum Venture Finance Oy's shareholding in Done Solutions Corporation
decreased to less than one twentienth (1/20) of company shares and voting
rights, as a result of the share disposal of January 12, 2007.
The company's largest shareholders are listed on Done's website at
www.donesolutions.com (Investors / Financial Information / Largest
shareholders).
MANAGEMENT SHAREHOLDINGS
On March 31, 2007, the Board of Directors and the President and CEO held 22.8
percent of the company's shares, totaling 15,137,500 shares. Moreover, on the
same date, Gateway Finland Oy held 17.3 percent of company shares, totaling
11,500,000 shares. Matti Nevalainen, a Board member, holds 50 per cent of
Gateway Finland Oy shares.
MAJOR BUSINESS RISKS
The stock exchange release of February 28, 2007 on the financial statements for
2006 provides information on major business risks exposed by the company. The
first quarter did not see any changes in the company's major business risks.
PROSPECTS
According to forecasts, economic development will remain favorable during 2007.
Demand for the Services segment's multilingual documentation services is
expected to remain steady and segment net sales are anticipated to show moderate
growth. Since demand for the Systems segment's solutions is expected to remain
firm, it is predicted that the segment will post higher net sales than in 2006.
The Health Care segment is expected to increase its net sales due to increased
focus on sales and expanding markets. The net sales growth rate depends on how
quickly the sales license application process will proceed and new markets open.
Consolidated net sales are expected to be higher than in 2006. With no major
cost pressures within the segments, costs are anticipated to show moderate
growth. Consolidated operating profit is expected to be higher than in 2006.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Juha Kujala, acting CEO, gsm +358(0)40 7349017,
juha.kujala@donesolutions.com
Mika Söyring, CFO, gsm +358(0)40 7770033,
mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution
Helsinki Stock Exchange
Financial Supervision Authority
Major media
With its shares having been quoted on the Helsinki Stock Exchange since 2001,
Done Solutions is organized into three business areas: Services (Done
Information) provides multilingual documentation and visualization services;
Systems (Done Logistics) provides comprehensive intralogistics systems, based on
automated materials-handling and supporting information systems; and Health Care
(Tiolat) provides iCare-tonometers for eye specialists and opticians.
GROUP KEY FIGURES AND RATIOS (MEUR) Q1/2007 Q1/2006 2006
Net sales 5.2 3.8 14.3
Operating profit 0.9 0.4 1.5
Operating margin, % 16.6 10.9 10.3
Pre-tax profit 0.9 0.5 1.5
Pre-tax profit, % 16.6 13.2 10.5
Net profit 0.6 0.4 3.5
Net profit, % 12.2 11.0 24.2
Gross capital expenditure 0.0 0.0 5.4
Gross capital expenditure, % of net sales 0.7 0.9 37.7
R&D costs 0.0 0.1 0.3
R&D costs, % 0.8 1.4 2.0
Gearing, % -12.2 -37.5 -1.8
Equity ratio, % 66.3 49.4 63.7
Return on investment (ROI), % 27.7 29.9 17.1
Return on equity (ROE), % 22.5 34.7 43.3
Earnings per share, cont. operations EUR 0.010 0.007 0.056
Earnings per share, discont.operations EUR 0.000 0.000 0.000
Equity per share, EUR 0.175 0.075 0.165
Average no. of employees 133 130 133
Cash flow from operating activities 1.2 0.4 0.6
Cash flow from investing activities -0.0 -0.0 -2.1
Net cash used in financing activities -1.1 0.1 0.2
Total cash flow 0.1 0.5 1.3
CONSOLIDATED INCOME STATEMENT (MEUR) Q1/2007 Q1/2006 2006
NET SALES 5.2 3.8 14.3
Other operating income 0.0 0.0 0.1
Materials and services -2.0 -1.1 -4.3
Employee benefits -1.6 -1.6 -6.0
Depreciation/amortization -0.2 -0.1 -0.4
Other operating expenses -0.6 -0.6 -2.2
OPERATING PROFIT 0.9 0.4 1.5
Share of associates' results 0.0 0.0 0.1
Financial expenses (net) -0.0 0.0 -0.0
PRE-TAX PROFIT 0.9 0.5 1.5
Income tax expense -0.2 -0.0 2.0
Minority interest 0.0 -0.0 0.0
NET PROFIT, continuing operations 0.6 0.4 3.5
Net profit, discontinued operations 0.0 0.0 0.0
NET PROFIT 0.6 0.4 3.5
Earnings per share, basic EUR 0.010 0.007 0.056
Earnings per share, diluted EUR 0.010 0.007 0.056
CONSOLIDATED BALANCE SHEET
(MEUR) March 31,‘07 March 31,‘06 Dec. 31,‘06
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 0.6 0.5 0.6
Goodwill 3.1 1.2 3.1
Intangible assets 4.8 1.7 4.9
Shares in associates 0.4 0.4 0.4
Available-for-sale assets 0.0 0.0 0.0
Receivables 0.4 0.4 0.4
Deferred tax assets 2.1 0.0 2.2
TOTAL NON-CURRENT ASSETS 11.3 4.3 11.5
CURRENT ASSETS
Inventories 0.2 0.1 0.2
Trade and other receivables 3.6 2.7 3.1
Cash and cash equivalents 2.5 4.2 2.4
TOTAL CURRENT ASSETS 6.4 7.1 5.7
TOTAL ASSETS 17.7 11.3 17.2
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS'S EQUITY
Share capital 5.3 4.8 5.3
Share premium 2.4 1.0 2.4
Fair value reserve 0.3 0.3 0.3
Revaluation reserve 1.5 0.0 1.5
Retained earnings/loss 2.0 -1.7 1.4
TOTAL EQUITY, attributable to holders
of parent company equity 11.6 4.5 11.0
MINORITY INTEREST 0.0 1.1 0.0
TOTAL SHAREHOLDERS' EQUITY 11.6 5.6 11.0
LIABILITIES
LONG-TERM LIABILITIES
Deferred tax liabilities 1.4 0.4 1.3
Provisions 0.6 0.8 0.5
Interest-bearing liabilities 1.1 1.1 1.2
Other payables 0.0 0.0 0.0
TOTAL LONG-TERM LIABILITIES 3.1 2.3 3.1
SHORT-TERM LIABILITIES
Trade and other payables 2.9 2.4 2.1
Provisions 0.0 0.0 0.1
Interest-bearing liabilities 0.0 1.1 1.0
TOTAL SHORT-TERM LIABILITIES 3.0 3.5 3.1
TOTAL LIABILITIES 6.1 5.8 6.3
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 17.7 11.3 17.2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (MEUR)
Share Share Other Retained Minority Total
capital premium reserves earnings interest equity
Balance Jan. 1, 2006 4.8 1.0 0.3 -2.0 1.0 5.0
Share subscriptions
based on stock options 0.0 0.1 0.0 0.0 0.0 0.1
Net profit 0.0 0.0 0.0 0.4 0.0 0.4
Balance March 31, 2006 4.8 1.0 0.3 -1.7 1.1 5.6
Paid dividends to
minority shareholders 0.0 0.0 0.0 -0.0 0.0 -0.0
Share subscriptions
based on stock options 0.1 0.1 0.0 0.0 0.0 0.2
Private placement 0.5 1.4 1.5 0.0 0.0 3.5
Net profit 0.0 0.0 0.0 3.5 0.0 3.5
Balance Dec. 31, 2006 5.3 2.4 1.8 1.4 0.0 11.0
Net profit 0.0 0.0 0.0 0.6 0.0 0.6
Balance March 31, 2007 5.3 2.4 1.8 2.0 0.0 11.6
CONSOLIDATED CASH FLOW STATEMENT
(MEUR) March 31,‘07 March 31,‘06 Dec. 31,‘06
Net profit 0.6 0.4 3.5
Adjustments to net profit 0.3 0.2 -1.6
Change in working capital 0.3 -0.2 -1.3
Interest paid -0.0 -0.0 -0.1
Interest received 0.0 0.0 0.2
CASH FLOW FROM OPERATING ACTIVITIES 1.2 0.4 0.6
Acquisition of subsidiary -0.0 0.0 -2.2
Disposal of operations 0.0 0.0 0.0
Purchase of PPE and intangible assets -0.0 -0.0 -0.1
Payments of other investments 0.0 0.0 0.1
NET CASH USED IN INVESTING ACTIVITIES -0.0 -0.0 -2.1
Rights issue 0.0 0.1 0.2
Repayments of long-term borrowings -1.1 0.0 0.0
Finance lease principal payments -0.0 -0.0 -0.0
NET CASH USED IN FINANCING ACTIVITIES -1.1 0.1 0.2
Net change in cash and equivalents 0.1 0.5 -1.3
Cash and equivalents, period-start 2.4 3.7 3.7
Cash and equivalents, period-end 2.5 4.2 2.4
CONTINGENT LIABILITIES
(MEUR) March 31,‘07 March 31,‘06 Dec. 31,‘06
Mortgages given 0.3 0.3 0.3
Pledges given 2.7 2.9 2.7
Securities given 1.5 1.0 1.3
Finance lease liabilities 0.1 0.1 0.1
Operating lease liabilities 0.2 0.2 0.3
NET SALES AND OPERATING PROFIT BY QUARTERS (MEUR)
MEUR Q1/2007 Q4/2006 Q3/2006 Q2/2006 Q1/2006 Q4/2005
Net sales 5,2 4,1 2,9 3,6 3,8 3,1
Operating profit 0,9 0,5 0,3 0,3 0,4 0,3
Operating profit, % 16,6 12,1 9,4 8,6 10,9 9,4
The figures (inc. comparatives) in this report are in compliance with IFRS. The
data in this report are based on unaudited figures.
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